Nissan becomes the latest global automaker to rely on China for help as it looks to turn things around. The Japanese automaker is facing an uphill battle as it plans to cut about 20,000 jobs while closing several plants as part of its recovery plan.
Nissan is the latest automaker to turn to China for help
Yesterday, we learned Nissan has already drastically cut production plans for the next-gen LEAF, a cornerstone of the company’s comeback plan.
A Nikkei report claimed Nissan was slashing production by more than half from September through November due to a battery shortage. The supply crunch is impacting production at Nissan’s Tochigi plant in Japan, where the new LEAF will be built for the US and Japanese markets.
It looks like Nissan is now turning to China, becoming the latest in a string of automakers looking to use Chinese tech or manufacturing methods to keep pace.
Tatsuzo Tomita, Nissan’s chief of total delivered cost transformation (TdC), told reporters on Wednesday (via Reuters) that the company has “gained access to Chinese-style ways of working.” Now, the company is working to apply what it has learned to gain a competitive edge globally.
Nissan’s cost-cutting chief said the challenge is now figuring out how to apply those methods to parts for our current and upcoming vehicles.”
The Japanese automaker will learn from its suppliers in China and the methods they use to accelerate output at a lower cost.
Nissan follows Toyota, which is now sourcing Chinese parts to build EVs for global markets from its production base in Thailand. Volkswagen, Mercedes-Benz, BMW, Audi, Ford, and several other major global automakers have announced similar plans to either learn from or use tech from China to apply on a worldwide scale.
As part of its recovery plan, Re:Nissan, the company aims to cut costs by 250 billion yen by the end of fiscal year 2026. The plans include cutting around 20,000 jobs and closing seven global manufacturing plants.
Electrek’s Take
Nissan, once viewed as a leader in electrification with the launch of the first-gen LEAF, has lost ground over the past few years.
There are now more electric options than ever, making it difficult for some brands (like Nissan) to keep up with costs. Chinese automakers, such as BYD, manufacture nearly every vehicle component, from batteries to software, enabling them to launch lower-priced EVs while still generating a profit.
Nissan is betting on its next-gen EVs to help it turn things around, including the new LEAF. However, after significantly cutting production plans, Nissan will need to do something, and fast, to stay afloat.
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